Mexican fast food chain Guzman Y Gomez smashes annual profit forecast
Updates with details on results from paragraph 2 onwards, share moves
Aug 27 (Reuters) -Mexican fast-food chain Guzman Y Gomez GYG.AX smashed annual underlying profit expectations on Tuesday, bolstered by strong restaurant sales and network expansion across Australia, but kept its forecast unchanged for fiscal 2025.
Shares of the Sydney-based startup fell as much as 9.2% to A$32.54 in early trade, while the benchmark stock index .AXJO was largely unchanged.
In its first earnings report since going public in June, Guzman Y Gomez (GYG) reported a pro forma post-tax net profit of A$5.7 million ($3.86 million) for the year ended June 30, ahead of its prospectus view of A$3.4 million and a Visible Alpha consensus of A$2.1 million.
"Strong sales growth and ongoing margin expansion resulted in significant growth in earnings, exceeding prospectus forecasts," co-CEO Steven Marks said in a statement.
The quick service restaurant chain maintained its prospectus forecast of A$6.0 million underlying profit for fiscal 2025, marginally above the prior fiscal and below a Visible Alpha consensus of A$8.4 million.
The firm put up A$335.1 million of new stock in its initial public offering - a highlight for the Australian equity capital markets this year, which have been languishing in a deep slumber over two years due to high interest rates and inflation.
GYG has 220 outlets in total and most of them are in Australia. It recorded global network sales of A$959.7 million in fiscal 2024, a more than 26% growth from the prior year.
In the first seven weeks of the current fiscal year, like-for-like sales in Australia were above its expectations at 7.4% on strong home deliveries and demand for cheaper food options.
($1 = 1.4784 Australian dollars)
Reporting by John Biju and Aaditya Govind Rao in Bengaluru; Editing by Tasim Zahid and Subhranshu Sahu
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